Miliband to unveil Regional Banks plan

March 14, 2013 8:53 am

A Labour Government would introduce a number of “regional banks” as partners of a British investment bank, Ed Miliband will tell the British Chambers of Commerce in a speech this morning. He’s expected to say:

“we don’t just need a single Investment Bank serving the country. We need a regional banking system, serving each and every region of the country.

“Regional banks, with a mission to serve that region and that region alone. Not banks that like to say ‘no,’ but banks that know your region and your business. Not banks that you mistrust, but banks you can come to trust.

“I am committed to turning that idea into reality during the next government. Because I am determined that One Nation Labour becomes the party of the small business and the entrepreneur as together we create a recovery made by the many and built to last.”

Speaking at 11.30 from Central Hall in Westminster, Miliband will also call for a complete overhaul of banking, highlighting the continued failure of banks to release capital investment to businesses even as other scandals continue – such as big bonuses at failing banks.

The speech follows up on many of the arguments made in Miliband’s Bedford speech last month – especially with reference to the future shape of the British economy and the need to invest in infrastructure now.

  • http://twitter.com/GordonMer Hmmph

    You mean, like “Building Societies”? Idiot.

  • JoeDM

    And where will the money come from to provide the capital assets for these new banks?

    Is this an example of “Lazy Labour” not thinking things through?

    • Brumanuensis

      Just sell off the BoE’s remaining gold stocks. They’re useless as it is, so why not put the money to better use.

      (Jaime won’t be happy with me, I know)

      • jaime taurosangastre candelas

        Quite the reverse, Brum. That much gold hitting the market all at once will artificially depress the price, as Gordon knows. Under the BofE rules, any gold sales need to be announced in advance, so even the most sleepy trader has a week of notice, and the price of gold collapses for a short time.

        (I would rather Britain kept the gold and got rid of both front benches with some form of intelligence test for those who wish to be Ministers – a better deal in the medium and long term)

        Just the time to buy some more sovereigns, legal tender in the UK, and tax and capital gains free as well. And after a couple of months, the price will be back where it always is, tracking in inverse proportion the destruction of value in fiat currencies.

        Gold has been useful for financial purposes for 3000 years. The pound sterling for rather less so.

        Famously, Gordon sold our Sterling-denominated gold and invested in Euros. It was the high point of his career. Since then, the Euro has depreciated against Sterling and the dollar (because the Euro is insanity in money form, even when measured against Sterling and the dollar, which are also both unreliable), and by 56% against gold.

        The man who persuaded him into this foolish action is now the Shadow Chancellor.

        • Brumanuensis

          “Under the BofE rules, any gold sales need to be announced in advance, so even the most sleepy trader has a week of notice”.

          That rule is certainly going to have to be amended.

          “Gold has been useful for financial purposes for 3000 years”.

          That’s also true of cowries, mind. Alas, the Cowry Exchange was shut down years ago due to becoming populated with shell companies ( http://www.youtube.com/watch?v=E0PIdWdw15U ).

          “Famously, Gordon sold our gold and invested in – Euros. It was the high point of his damned career. Since then, the Euro has depreciated against Sterling, the dollar, and by 56% against gold. Thanks, you Scottish fool”.

          He didn’t invest it solely in Euros nor was he alone in buying up currencies, instead of commodities. Hindsight is 20/20 after all. The Euro’s depreciation was not a widely considered hypothesis.

          • jaime taurosangastre candelas

            “The Euro’s depreciation was not a widely considered hypothesis.”

            Well, maybe not among “experts” or the “chatterati”, but it has always been likely to those with any common sense. What sort of fool reckons it is wise to shackle together wildly differing economies, with no ability to vary exchange rates, and with no ability to harmonise economic, fiscal or tax policies?

            I take no credit for that. Rather, I reserve my suspicion for any form of fiat currency, and given the lunacies of modern politicians across the west, recently culminating in the popular choice of a professional comedian in Italy as a “backlash”, I feel vindicated.

            Land in separate countries, food resources, and gold are far more likely to be worth something than one of our politicians’ empty promises.

          • Brumanuensis

            Speaking of Gold: http://www.guardian.co.uk/business/2013/mar/13/london-financial-sector-gold-market

            “Well, maybe not among “experts” or the “chatterati”, but it has always been likely to those with any common sense. What sort of fool reckons it is wise to shackle together wildly differing economies, with no ability to vary exchange rates, and with no ability to harmonise economic, fiscal or tax policies? Would you “buy” that?”

            Well no, but most of the Eurozone’s balance of trade problems came from the Euro being relatively over-valued, which drove up labour costs in the Mediterranean countries. I’m not defending the Euro, more arguing that devaluation wasn’t an natural side-effect.

            “Land in separate countries, food resources, and gold are far more likely to be worth something than one of our politicians’ empty promises”.

            But gold is very volatile and by no means guarantees price stability ( http://dshort.com/inflation/inflation-recessions-1872-present.gif ). There’s a reason most economists think its a terrible idea to have a gold standard and it’s not just economic group-think ( http://www.igmchicago.org/igm-economic-experts-panel/poll-results?SurveyID=SV_cw1nNUYOXSAKwrq ).

          • jaime taurosangastre candelas

            Volatility is a measure over time. It depends upon your period of reference. My period of reference is 30 years, 10 years less than I expect to live from now. If your period of reference is 2 months, you will have a different view.

            Your little chart should have overlaid upon it the cost of gold in the local currency. It would go from near bottom left to near top right.

    • Redshift1

      Well there was 6bn of capital ready for the Green Investment Bank when Labour left office. The Tories swung the axe at it however – yet another example of them not thinking things through really.

      It could be paying back the economy bigtime. Instead we have basically every sane economist arguing we should create a British Investment which economically speaking is a very similar idea with broader scope.

  • jaime taurosangastre candelas

    Almost, but not quite. This time the money will come from taxpayers, and there would probably be no need to build up years of saving deposits to establish a record of credibility for a business wishing to borrow (because if there was, the policy would have little effect for many years, and that “does not work” in terms of instant policy and instant results).

    Perhaps Ed’s SpAD is too young to remember Building Societies.

    • http://twitter.com/blue_burmese blueburmese

      This time the money will come from taxpayers, and there would probably be no need to build up years of saving deposits to establish a record of credibility for a business wishing to borrow

      And what could possibly go wrong with the taxpayer lending money to businesses that the banks won’t touch?

    • Dave Postles

      Building societies still exist.

  • Brumanuensis

    Not quite sure why you need to be so vitriolic. Anything to help replicate the old building societies is a plus in my book.

Latest

  • Comment Laying the Foundations for a Labour Century

    Laying the Foundations for a Labour Century

    This post is written by Liz Kendall MP and John Woodcock MP Britain stands at a crossroads. Scotland rejected separation, but the large numbers of traditionally Labour supporters voting Yes has highlighted an undercurrent of deep dissatisfaction that is reflected across the United Kingdom. One future path would see our country seeking to reject and counter the forces of change that are deeply unsettling many communities and threatening our established place in the world. The other would embrace change as […]

    Read more →
  • Comment Call for a People’s Campaign

    Call for a People’s Campaign

    We find ourselves at a crossroads. The path of our country and the character of our democracy will be shaped afresh in the coming months, for good or ill. Up and down the country, people’s energies are rousing — from Glasgow to Clacton, from London streets to Cornish hamlets. Their patience grows ever shorter. Most feel no one is listening to them. No one is talking their language, or offering them much change they can believe in. Is this really […]

    Read more →
  • Comment It’s incontestable – we need change in England

    It’s incontestable – we need change in England

    After a dreadful summer, the Scottish Independence referendum –and the developments that followed it – have again illustrated David Cameron’s inept political judgment. From the single question on the Scottish ballot, to the woefully inadequate Edinburgh agreement, Alex Salmond was lucky to have found a British Prime Minister who, in the words of Peter Oborne, has proven to be so infamously ‘indolent, inattentive…and out of touch.’ Campaigning in the central belt during the final weeks of the referendum campaign the […]

    Read more →
  • Comment Local Government Bold and unique – a role for local government in our modern state

    Bold and unique – a role for local government in our modern state

    As we talk about our country’s constitution in the coming months, the starting point is what powers the Scottish Parliament should have. And whilst devolution for other nations and regions is also a central part of the wider debate, it is a chance for us to be clear about what powers local government should be able to exercise in the future too. I appreciate that, as the councillor in charge of housing in Islington, this argument might sound a bit […]

    Read more →
  • News Labour Conference 2014: Liveblog

    Labour Conference 2014: Liveblog

    16.56: Former Transport Secretary Sadiq Khan speaking in the LabourList Marquee now. Recalls when Andrew Adonis was dubbed “the Thin Controller” for his nationalisation policy. As his junior, Khan earned the moniker “the Short Controller”. 16.55: Audience members asks about how TTIP would affect plans to renationalise the railways? 16.41: Big cheer for Kevin Maguire’s call for Maria Eagle to be Transport Secretary if Labour win next year… 16.35: Maria Eagle, former Shadow Transport, says “There’s a reason no other […]

    Read more →